SushiSwap Community Proposes New Structure To Limit DAO Liability

The SushiSwap community proposes a new structure to limit DAO liability and according to Tangle, the foundation will play a key role in doing so, expectedly to drive Sushi’s growth so let’s read more today in our latest cryptocurrency news.

SushiSwap is a community-led suite of DEFI tools that plans to implement a legal structure that is aimed at mitigating the risks for token holders and for the members of the Sushi protocol. Sushi’s new legal structure will be based on the community-approved proposal from March 20 which cited the need for an association or foundation to help provide legal clarity and support for the SushiDAO. According to the proposer, Tangle, the intended foundation will play a huge role in limiting the liability for contributors and will drive sushi’s growth.

📣Much success.🎉
It's a small victory that seems so very irrelevant given all that's currently happening in the world, but it's an important step.

Thank you @DACBeachcroft (& for this: @PageWhite_IP Germany), as well as @MosesSingerLLP for their representation in the USA. ♥️ 1/ pic.twitter.com/nufaJLUSFG

— Dogecoin Foundation (@DogecoinFdn) March 2, 2022

Considering the possibility of risk mitigation and liability limitation, the proposal recieved a 100% vote for the implementation of the legal structure. Tangle estimates an upfront expense of $100,000 and a recurring cost of $10,000 to set up the foundation:

“There are several jurisdictions which can be contemplated for forming a DAO entity, but Swiss Association law is currently the leading solution.”

In order to build the foundation, the community will implement a four-step process that will include establishing the members, the token distribution, and transfer alogn with the draft articles of the foundation. The proposal includes a need for service entities including “DevCo services entity and other core contributor entities.” The individuals residing in the crypto-supportive jurisdictions will be considered perfect for the candidates and members of the foundation.

Adding to the discussion, the community members outlined the importance of defining the foundation’s use and what it owns:

“It’s definitely a must, it’s really the time for Sushi to update itself and to have a legal shield ready for all contributors.”

Proposal: Sushi Legal Structure

To form an association or a foundation for Sushi DAO in order to provide clarity regarding the rights and obligations of token holders and contributors and limit their liability and mitigate the future risk.$SUSHI 🍣https://t.co/SHpKcpvjqP

— veRSK (@KartelCrypto) March 20, 2022

The SushiSwap community is a big one but the smaller ones also seep into the mainstream and the foundation plays a huge role in dictating the roadmap and the relevance of the proejct. For example, the DOGE foundation registered “Doge”, “Dogecoin” as trademarks in the EU. The foundation faced plenty of issues with the misuse of the name and imagery and according to a former director Ross Nicoll, a few parties were registering trademarks for DOGE, and in 2021, there was even a lawsuit against that developers from someone that claimed the foundation is responsible for their funds.